Yesterday, KAREX jumped 13 sen (4.4%) and broke out from the “Bullish Flag” chart pattern to close at RM3.10. Key momentum indicators such as Stochastics and RSI are both hooking upwards, suggesting that a bullish uptrend is imminent. Share price is well supported by all SMAs (20-, 50- and 100-). All signals led us to believe that KAREX is poised for another upwards movement, making its way up to RM3.43. Traders looking to buy into the stock should aim to lock in their gains 3 bids below the targeted level (RM3.40). Meanwhile, a protective stop-loss should also be placed at RM2.97.

 

 

Source: Kenanga